Compare · MCA vs bank loan vs term loan

Three ways to fund growth. Only one moves this week.

We are a direct lender, so we have an obvious bias — which is why this page also tells you when a bank loan is the better deal. Speed, cost, collateral, paperwork: the whole picture, in a few minutes.

Side-by-side calculator

Move the amount. Watch the three structures react.

Same capital, three routes. Indicative figures only — final terms are quoted per file.

Amount raised$1.50M
$500K$5.00M
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Add your business email to move the amount and model your own scenarios. Confidential · never resold.

Classic MCAFactor 1.45x

$14,796

per business day · ~7 months

Total repaid
$2,175,000
Total cost
$675,000
Effective APR
~136%+
Funding speed
24–72h
Paperwork
Light (bank statements)
KBK term facilityFactor 1.16x

$29,000

per month · 60 months

Total repaid
$1,740,000
Total cost
$240,000
Effective APR
~6%
Funding speed
2–4 days
Paperwork
Standard
SBA 7(a) loan11% APR

$32,614

per month · 60 months

Total repaid
$1,956,818
Total cost
$456,818
Effective APR
11%
Funding speed
45–75 days
Paperwork
Heavy (credit, collateral, business plan)

On $1.50M, the KBK term facility costs $435,000 less than the most expensive route above — and lands in 2–4 days.

Check my eligibility — 60 sec
§ I The three routes

Same objective. Three very different paths.

Each one is right for someone. The question is which matches your timeline.

Classic MCA

Fast — but relentless

Fast money, then a daily sweep on every card batch until the advance clears. Factor rates of 1.35x–1.49x are common.

  • Daily or weekly debits straight off your receipts
  • Short horizon, typically 3 to 12 months
  • Factor rates commonly 1.35x–1.49x; renewals can push higher
  • Stacking pressure: multiple advances layered on one business

KBK term facility

Term structure, MCA speed

A structured term facility from our own balance sheet, $500K to $5M, rate locked on day one.

  • Indicative decision in 24–48 hours on a complete file
  • Predictable schedule sized on your revenue rhythm — no daily sweep
  • No upfront fees, no prepayment penalty.
  • Direct lender — one named advisor, who is also the underwriter

Bank loan

Cheapest — if you can wait

The cheapest headline cost — for clean audited accounts, collateral and time to spare.

  • Typically 4 to 10 weeks from first meeting to release
  • Heavy documentation: filed accounts, forecasts, covenants
  • Collateral and personal guarantees are the norm
  • Hard credit search on the business and often the director
What mattersClassic MCAKBK term facilityBank loan
Decision window24–72h, broker-led24–48 hours, in-house4–10 weeks, committee-led
Release of fundsDays after approvalOnce compliance clearsWeeks after approval
Facility sizeTypically $10K–$500K, receipt-capped$500K to $5MWide, credit-dependent
Repayment mechanicDaily/weekly sweep on card receiptsStructured term scheduleFixed amortising instalments
DocumentationStatements plus broker formsBank statements and KYCFull accounts, forecasts, covenants
Upfront feesOrigination and broker fees commonNoneArrangement fee common
Re-pricing during the termRenewals and stacking pressureNeverPossible on covenant breach
Early repaymentRarely discountedFree, no penaltyBreak costs common
CollateralReceivables assignmentCase by caseUsually required
Who decidesAn unnamed funder on a panelYour named advisorA credit committee you never meet
Your file is shopped aroundYes, 5–15 fundersNeverNo
§ II Honest answer first

When you should not borrow from us.

A lender that claims to be right for everyone is selling, not underwriting. Here are the cases where we will tell you to go elsewhere — and we do tell people this.

You have six to ten weeks and a bankable balance sheet — a bank will almost always be cheaper. Take the cheaper money.

You want the smallest possible headline cost and the timing of the funds does not change the outcome.

You need capital for a project with no revenue attached to it yet; our facilities are sized on trading performance.

Your requirement sits well below $500K. We would be the wrong size of lender for you.

§ III Where we win

Four situations where speed is the whole point.

The opportunity has a date on it

Stock at a discount, a site that becomes available, a supplier contract that closes this month. Capital that arrives in six weeks is capital that arrives after the decision was made for you.

The bank said no on form, not on substance

Short filing history, a recent restructure, a sector the credit committee avoids. We underwrite trading performance rather than the shape of your accounts.

Your revenue is seasonal

A rigid amortising loan punishes the quiet months. We size the schedule around your actual revenue rhythm rather than a flat calendar.

You do not want to sell equity

Growth capital without dilution, without a board seat and without a new voice in how you run the business.

§ IV The cost, in plain words

Factor rate is not an interest rate. Here is the difference.

Most of the confusion around merchant cash advances comes from comparing a factor rate to a bank APR as if they were the same number. They are not.

Interest accrues. A factor does not.

A bank charges interest on the balance outstanding, so the cost changes as you repay. A factor rate fixes the total repayable the day the facility is drawn: multiply the amount by the factor and that figure never moves again.

Why the comparison misleads

Converting a factor rate into an APR assumes an interest curve that does not exist here. The honest comparison is total cash out the door, against the value of having the capital now rather than in two months.

What we never add

No upfront fees, no prepayment penalty. No arrangement fee, no origination charge, no broker commission built into your rate, and no re-pricing during the life of the facility. The number quoted in writing before you sign is the number you pay.

Worked example · illustrative
Facility drawn$1,000,000
Factor rate1.15x
Total repayable$1,150,000
Term60 months
Indicative monthly≈ $19,167
Upfront fees$0

Illustration only, on a published facility. Your own rate depends on trading performance and is quoted in writing, once, before you sign. Facilities from $500K to $5M.

§ V Straight answers

The questions people actually ask.

K

No obligation · no mark on your credit file

Still unsure which route fits? Let's work it out in one call.

Tell us the timeline and the number. If a bank is the better answer, we will say so.